Nissan CEO presses turnaround plan after rapid six-week reset

Nissan CEO Ivan Espinosa drew up a rescue plan within six weeks of taking charge, as the Japanese automaker faced losses, weaker demand and pressure in two key markets, Fortune reported. His program now centers on cutting costs, speeding product development and rebuilding customer interest after a failed Honda merger effort.

Espinosa, a Mexican-born engineer, became Nissan’s fourth chief executive in eight years after predecessor Makoto Uchida stepped down following the collapse of merger talks with Honda, according to Fortune. He took over a company that Fortune described as being in one of the worst periods of its 92-year history.

Nissan’s problems have built over several years. Fortune reported that the company struggled to regain momentum after the 2018 arrest of former CEO Carlos Ghosn on allegations of financial misconduct. Between fiscal 2017 and fiscal 2025, Nissan’s revenue rose 0.4%, while Toyota’s climbed 63%, according to Fortune.

Cost cuts and faster car development

Espinosa told Fortune that his long career inside Nissan gave him a clear view of what had and had not worked. Before becoming CEO, he had spent much of his time on product planning, including decisions about which vehicles Nissan should build and for which markets.

Under Espinosa, Nissan announced its Re:NISSAN plan in May, aiming to cut costs by 500 billion yen, or about $3.1 billion, and return to operating profit by early 2027, Fortune reported. The company said it would cut 20,000 jobs and reduce its plant count from 17 to 10.

Nissan has since announced plans to close its Kanagawa plant in Japan, which had operated since 1961, and sold facilities in South Africa and Mexico, according to Fortune and Nissan announcements cited by Fortune. Espinosa told Fortune the decisions were difficult but necessary.

The CEO is also pushing Nissan to develop vehicles faster. Fortune reported that Espinosa had already sought to shorten the new-model development cycle from four-and-a-half years to three years, using digital tools and artificial intelligence in place of some traditional processes. Since becoming CEO, he said Nissan has brought that timeline down to just over two years.

China and U.S. pressures

China remains a central test for the turnaround. Fortune reported that Nissan gets about one-third of its business from China, where local automakers, especially electric-vehicle makers, have taken share from foreign brands.

Espinosa’s answer in China includes the N7, an electric sedan developed with Dongfeng by teams in China. Fortune reported that the vehicle was developed in 24 months, with some versions priced at 119,900 yuan, or about $17,600, and that monthly deliveries reached 10,148 units by August 2025, citing China EV Home.

In the U.S., tariffs have added another burden. Fortune reported that President Donald Trump initially raised duties on Japanese cars to 27.5%, before negotiations lowered them to 15%, still above the earlier 2.5% rate.

Nissan is trying to raise local content in U.S.-market vehicles. Fortune reported that the company ended calendar 2025 with about 58% local content, up from 45% a year earlier, and is targeting 60%.

Shareholders remain impatient

Nissan reported 12 trillion yen, or about $74 billion, in revenue for the fiscal year that ended March 31, 2026, down 5%, according to Nissan results cited by Fortune. The company posted a 533 billion yen net loss after a 671 billion yen loss the prior year.

Nissan expects to return to net profit in the next fiscal year, forecasting 20 billion yen, according to Nikkei Asia reporting cited by Fortune. Investors have yet to be convinced: Fortune reported that Nissan shares fell 45% over five years, while Honda rose 26% and Toyota rose 42%.

At Nissan’s June annual meeting, shareholders rejected the reappointment of one independent director and proposed motions to remove Espinosa as meeting chair, according to Bloomberg reporting cited by Fortune. Reuters reported that one investor even proposed bringing Ghosn back as CEO, which Fortune described as a sign of shareholder anger over results.

This story draws on original reporting from Fortune.